Key Takeaways
- • Kotak Alternative Asset Managers forecasts up to $5bn of inflows into India's private credit market from domestic and international investors over the next two years, according to a Bloomberg report.
- • India's private credit market grew 35% year on year to $12.4bn in 2025, per EY data cited in the report.
- • Limited bank appetite for infrastructure financing and riskier borrowers is creating lending opportunities for private lenders, according to Kotak Alternate managing director Srini Sriniwasan.
- • Recent Reserve Bank of India measures to stabilise the rupee could encourage international private credit investment by reducing currency volatility.
- • Kotak Alternate is seeking up to $300m for its first domestic real estate fund in two decades, targeting rupee financing across equity and debt.
Summary
India's private credit market could attract up to $5bn from domestic and international investors over the next two years, according to a Bloomberg report citing Kotak Alternative Asset Managers. Srini Sriniwasan, managing director of Kotak Alternate, made the remarks on the sidelines of the Bloomberg New Economy Forum. He said limited bank appetite for infrastructure financing and riskier borrowers is opening room for private lenders. India's bond market, which predominantly serves higher-rated borrowers, is also driving demand for alternative financing.
Sriniwasan linked the outlook to recent Reserve Bank of India measures aimed at stabilising the rupee. These include a special facility to meet oil companies' dollar demand and a requirement for banks to deposit cash with the central bank for certain foreign exchange transactions. He argued these steps could encourage international private credit investment by reducing currency volatility and improving investor confidence. The rupee had gained nearly 2% during the week.
According to EY data cited in the report, India's private credit market grew 35% year on year to $12.4bn in 2025. Sriniwasan said differences in financing structures provide some insulation from pressures affecting global private credit markets, where international managers have restricted investor withdrawals this year amid concerns over asset quality and exposure to software businesses facing disruption from artificial intelligence.
Separately, Kotak Alternate is seeking up to $300m for its first domestic real estate fund in two decades. The fund will invest through both equity and debt across offices, retail and other property segments, including student accommodation, with a focus on rupee financing.
Sriniwasan linked the outlook to recent Reserve Bank of India measures aimed at stabilising the rupee. These include a special facility to meet oil companies' dollar demand and a requirement for banks to deposit cash with the central bank for certain foreign exchange transactions. He argued these steps could encourage international private credit investment by reducing currency volatility and improving investor confidence. The rupee had gained nearly 2% during the week.
According to EY data cited in the report, India's private credit market grew 35% year on year to $12.4bn in 2025. Sriniwasan said differences in financing structures provide some insulation from pressures affecting global private credit markets, where international managers have restricted investor withdrawals this year amid concerns over asset quality and exposure to software businesses facing disruption from artificial intelligence.
Separately, Kotak Alternate is seeking up to $300m for its first domestic real estate fund in two decades. The fund will invest through both equity and debt across offices, retail and other property segments, including student accommodation, with a focus on rupee financing.
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